ANNUAL REPORT 2011 for the year ended March 31, 2011

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Credit Saison Co., Ltd. and Consolidated Subsidiaries
For the Years Ended March 31, 2012 and 2011

13. AVAILABLE-FOR-SALE SECURITIES

(A) As of March 31, 2012 and 2011, acquisition costs and carrying amounts on the consolidated balance sheets of available-for-sale securities that have market value are summarized below:


  Millions of yen Thousands of U.S. dollars
2012 2011 2012
Acquisition
cost
Carrying
amount
Difference Acquisition
cost
Carrying
amount
Difference Acquisition
cost
Carrying
amount
Difference
Balance sheet amount
exceeding acquisition cost:
                 
Equity shares ¥18,602 ¥28,316 ¥ 9,714 ¥18,526 ¥26,311 ¥ 7,785 $226,473 $344,724 $118,251
Bonds                  
Corporate 1,000 1,014 14 12,173 12,341 168
Other 511 543 32 958 993 35 6,217 6,614 397
Subtotal 20,113 29,873 9,760 19,484 27,304 7,820 244,863 363,679 118,816
Balance sheet amount not
exceeding acquisition cost:
                 
Equity shares 4,793 4,066 (727) 4,893 3,554 (1,339) 58,353 49,507 (8,846)
Bonds                  
Corporate 6,758 6,758 (0) 147 104 (43) 82,272 82,271 (1)
Other 900 791 (109) 900 865 (35) 10,957 9,627 (1,330)
Other 1,164 1,134 (30) 154 124 (30) 14,172 13,810 (362)
Subtotal 13,615 12,749 (866) 6,094 4,647 (1,447) 165,754 155,215 (10,539)
Total ¥33,728 ¥42,622 ¥ 8,894 ¥25,578 ¥31,951 ¥6,373 $410,617 $518,894 $108,277

(B) Proceeds from sales of available-for-sale securities for the years ended March 31, 2012 and 2011 were ¥971 million (US$11,824 thousand) and ¥1,672 million, respectively.

Gross realized gains and losses on these sales, computed on the moving-average cost basis, were ¥174 million (US$2,116 thousand) and ¥1 million (US$12 thousand), respectively, for the year ended March 31, 2012 and ¥2 million and ¥100 million, respectively, for the year ended March 31, 2011.

(C) As of March 31, 2012, the carrying values of debt securities by contractual maturities for securities classified as available-for-sale securities were as follows:


  Millions of yen   Thousands of
U.S. dollars
2012   2012
Due in one year or less ¥ 596   $ 7,255
Due in one to five years 8,610   104,828
Due in five to ten years  
Due after ten years 888   10,813
Total ¥ 10,094   $ 122,896

14. RETIREMENT BENEFIT PLANS

The Company and some of its consolidated subsidiaries changed from cash balance plans and defined contribution plans or prepaid retirement benefit payment plans at the employee’s option to defined contribution plans or prepaid retirement benefit payment plans at the employee’s option during at the current fiscal year.

The effect of this change was to increase loss before income taxes and minority interests by ¥1,658 million ($20,187 thousand) and was recorded as a loss on revision of retirement benefit plan in the statement of income for the year ended March 31, 2012.


(A) ACCRUED PENSION AND SEVERANCE COSTS

Accrued pension and severance costs as of March 31, 2012 and 2011 are calculated below:


  Millions of yen   Thousands of
U.S. dollars
2012 2011   2012
Projected benefit obligation ¥- ¥ (10,260)   $-
Fair value of plan assets 7,035  
Funded status (3,225)  
Unrecognized actuarial differences 3,013  
Unrecognized prior service costs (1,967)  
Accrued pension and severance costs ¥- ¥ (2,179)   $-

Adjustment for change of retirement benefit plan as of March 31, 2012 was as follows:


  Millions of yen   Thousands of
U.S. dollars
2012   2012
Decrease in projected benefit obligation ¥ (10,757)   $ (130,963)
Decrease in fair value of plan assets 7,061   85,960
Unrecognized actuarial differences 3,287   40,012
Unrecognized prior service costs (1,663)   (20,240)
Decrease in acured pension and severance costs ¥ (2,072)   $ (25,231)

The amount of assets moved to the defined contribution pension plan was ¥5,791 million (US$70,496 thousand). This move was conducted on April 27, 2012.


(B) RETIREMENT BENEFIT EXPENSES

Retirement benefit expenses for the year ended March 31, 2012 and 2011 are stated below:


  Millions of yen   Thousands of
U.S. dollars
2012 2011   2012
Service costs ¥ 256 ¥ 490   $ 3,112
Interest costs 104 212   1,269
Expected return on plan assets (19) (268)   (225)
Actuarial differences recognized as expenses 390 838   4,752
Prior service costs recognized as expenses (304) (613)   (3,706)
Other* 524 319   6,370
Retirement benefit expenses 951 978   11,572
Loss on revision of retirement benefit plan 1,658   20,187
Total ¥ 2,609 ¥978   $31,759
  • * Other represents payments to the defined contribution pension fund and other items.

The principal assumptions used in determining retirement benefit obligations and other components for the Companies' plans are stated below:


  2012 2011
Discount rate 2.0%
Expected rate of return on plan assets 4.0%
Period of recognition of prior service costs 9-11 years evenly
Period of recognition of actuarial differences 9-11 years evenly

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